DSM, private equity firm taking CRO Patheon private
Dutch chemicals company Royal DSM N.V. (Euronext:DSM) and private equity firm JLL Partners are teaming up to acquire CRO Patheon Inc. (TSX:PTI) for $9.32 per share in cash, which the partners said gives the CRO an enterprise value of about $2 billion. The price is a 64% premium to Patheon's close of C$5.94 on Monday, before the deal was announced. The partners plan to combine Patheon with Royal DSM's DSM Pharmaceutical Products group in a newco to be owned 51% by JLL and 49% by DSM.
The newco, which does not yet have a name, will be a contract development and manufacturing organization that provides APIs through finished dosage products. DSM and JLL expect the newco to have 2014 pro forma sales of about $2 billion. Patheon recorded revenues of $943 million for the 12-month period ending July 31. DSM's pharmaceutical products group had 2012 net sales of EUR 543 million ($733.2 million). Patheon CEO Jim Mullen will remain CEO of the newco. ...